5 Trade Business Metrics You Can’t Ignore
When it comes to business growth, what you don’t measure, you can’t manage.
Whether you’re a seasoned business owner or just starting out in the trade, service, or construction industry, keeping an eye on key performance indicators (KPIs) can set you on the path to success.
This article dissects why scorecards are vital and what metrics should be on your weekly radar.
What Are Scorecards?
A scorecard is essentially a snapshot of your business’s vital signs. It allows you to track your performance across various metrics, granting you greater control and predictability over your business outcomes.
Whether it’s a daily, weekly, or monthly scorecard, you can utilize tools ranging from simple spreadsheets to specialised software like Asana to collate data.
Top 5 Metrics to Include on Your Weekly Scorecard
Outreach Metrics
- Emails Sent
- Phone Calls Made
Monitoring outreach helps you know how much effort is being put into generating new leads. If growth is your goal, track these figures diligently.
Lead Generation
- Leads Generated
- Quality of Leads
Understanding the conversion from outreach to leads is essential. Knowing your lead conversion rates empowers you to make calculated moves to grow your business.
Jobs and Quotes
- Jobs Booked
- Quotes Sent
- Quotes Accepted
Jobs and quotes are the middlemen between leads and revenue. Monitoring these numbers allows you to predict your revenue streams more accurately.
Financial Metrics
- Invoices Sent
- Average Job Value
- Cash Flow
- Cash is king! Tracking invoices, average job value, and cash flow gives you a panoramic view of your financial health.
Team Performance
- Sick Days
- Overtime
- Callbacks
Your team is your biggest asset, particularly in service-based businesses.
Monitoring team metrics like sick days or overtime can provide insights into overall business efficiency and workplace culture.
Why These Metrics Matter
Understanding your scorecard helps you set clear targets. Whether it’s achieving a revenue goal for the week or boosting your job booking rate, these metrics function as predictability markers.
If, for instance, you notice a drop in work orders from a regular client, your scorecard enables you to take prompt, corrective action.
Measuring the right metrics can mean the difference between success and stagnation.
In a competitive landscape, especially against companies like Profitable Tradie and Life Style Tradie, making data-driven decisions can give you the edge. So start tracking these KPIs and set your business up for scalable success!
For more insights on business growth in trade, services, and construction, tune into our popular podcast, “The UpScale Business Podcast.”
Have you started using a business scorecard? We’d love to hear what metrics you find useful. Feel free to share your thoughts below!